CMB Places Target Portfolio Funds into Ordinary Liquidation; Criminal Complaint Filed Against 37 Individuals

The Capital Markets Board has placed the funds founded by Target Portfolio into ordinary liquidation proceedings. According to the CMB's weekly bulletin, 22 individuals faced criminal complaints due to transactions in Cherry Mining shares, and 15 individuals due to transactions in Lights Energy shares — totaling 37 individuals and institutions. All licenses held by these individuals have been revoked and trading bans have been imposed.

Ordinary liquidation means that payments to investors will be conducted under existing fund liquidation rules without requiring Parliament approval or separate legal regulation. As for extraordinary liquidations, the nine-point proposal submitted by the ruling party to Parliament passed committee on October 14; it is expected to reach the general assembly.

Ordinary liquidation procedures had previously been initiated for A1 Capital, Bulls, and Pardus funds, starting with money market funds and those with the largest investor base. Target Portfolio funds constitute the final link in this chain.

For context: In the 2001 banking crisis, the liquidation of institutions transferred to the Deposit Insurance Fund lasted for years, with the vast majority of investors recovering only partial returns. The CMB's choice this time to pursue ordinary liquidation is being interpreted as an indication that the asset quality of the funds does not warrant extraordinary procedures.